Indonesian share prices are expected to remain volatile next week amid rising commodity and oil prices and interest rate concerns, a dealer said Friday. "The oil and commodities price spike would give a bad impact on next week's index," Dongsuh Kolibindo Securities analyst Ryan Aryadi Suwarno told AFP.
He said that investors are sensitive to the possibility of interest rate hikes. "Investors are quite certain that April's inflation figures would rise, triggering central bank to increase its interest rate in the coming weeks," he said. Suwarno said investors would next week likely favour commodity and mining shares, especially tin, coal and plantation stocks.
For the week ending April 18, the composite index rose 45.34 points, or 1.97 percent, to finish at 2,349.27. Daily average volume totalled 5.80 billion shares worth an average 11.14 trillion rupiah (1.21 billion dollars). Suwarno predicted that the market may test resistance at 2,400, with support at 2,338.
At close of trade Friday, the rupiah was trading at 9,190/9,195 to the dollar.
Comments
Comments are closed.